The Federal Aviation Administration will continue to cap Boeing’s production of its 737 MAX plane.
Transcript:
I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Investors are reacting to the PCE report – consumer prices rose 0.3 percent in April, and 2.7 percent since 2023, in line with analyst expectations. The federal reserve pays the closest attention to this inflation report and will take this data into account when it makes its next decision on interest rates. Investors are anxious that sticky inflation could delay interest rate cuts even further into 2024.
In other news – Boeing executives, including CEO Dave Calhoun, met with the Federal Aviation Administration to present sweeping changes to the company’s production process and safety systems. Boeing’s plan promises improved employee training, clearer instructions for assembly line workers, and the prevention of suppliers shipping flawed plane parts.
According to the company, it has already implemented several new quality control plans – including the purchasing of 7,500 new tools and equipment, 400 updated employee instructions, and 300 hours of employee training materials. Boeing’s CEO of Commercial Airplanes stated “We will succeed as a team and execute with safety, quality, and compliance in everything we do.”
Despite the new protocols and improvements, the FAA wants to see more. The agency says it will not permit Boeing to increase its MAX aircraft production until it is satisfied with the production quality. FAA head Mike Whitaker says he doesn’t think that will happen for at least several months.
Boeing is under pressure to fix production flaws after a number of high-profile safety issues including a January incident where a door panel blew out mid-flight.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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